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Mylan NV (NAS:MYL)
Beneish M-Score
-1.94 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Mylan NV has a M-score of -1.94 signals that the company is a manipulator.

MYL' s 10-Year Beneish M-Score Range
Min: -4.35   Max: -0.52
Current: -1.94

-4.35
-0.52

During the past 13 years, the highest Beneish M-Score of Mylan NV was -0.52. The lowest was -4.35. And the median was -2.47.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Mylan NV for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.3768+0.528 * 0.9732+0.404 * 0.95+0.892 * 1.1797+0.115 * 0.8344
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0501+4.679 * 0.0009-0.327 * 0.7327
=-1.94

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $2,861 Mil.
Revenue was 2371.7 + 1871.7 + 2082.7 + 2084 = $8,410 Mil.
Gross Profit was 1008.1 + 830.1 + 969 + 1012.4 = $3,820 Mil.
Total Current Assets was $7,891 Mil.
Total Assets was $22,795 Mil.
Property, Plant and Equipment(Net PPE) was $1,899 Mil.
Depreciation, Depletion and Amortization(DDA) was $736 Mil.
Selling, General & Admin. Expense(SGA) was $1,891 Mil.
Total Current Liabilities was $5,369 Mil.
Long-Term Debt was $5,890 Mil.
Net Income was 167.8 + 56.6 + 189.2 + 499.1 = $913 Mil.
Non Operating Income was -2 + -18.5 + -38.1 + 1.5 = $-57 Mil.
Cash Flow from Operations was 114.7 + 267 + 126.6 + 440.7 = $949 Mil.
Accounts Receivable was $1,762 Mil.
Revenue was 1837.3 + 1715.6 + 1808.526 + 1767.426 = $7,129 Mil.
Gross Profit was 808.8 + 737.8 + 795.951 + 808.518 = $3,151 Mil.
Total Current Assets was $4,477 Mil.
Total Assets was $15,603 Mil.
Property, Plant and Equipment(Net PPE) was $1,756 Mil.
Depreciation, Depletion and Amortization(DDA) was $533 Mil.
Selling, General & Admin. Expense(SGA) was $1,527 Mil.
Total Current Liabilities was $2,601 Mil.
Long-Term Debt was $7,918 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(2861.2 / 8410.1) / (1761.6 / 7128.852)
=0.34020999 / 0.24710851
=1.3768

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(830.1 / 7128.852) / (1008.1 / 8410.1)
=0.44201633 / 0.4541682
=0.9732

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (7891.4 + 1899.3) / 22794.6) / (1 - (4477.1 + 1755.8) / 15602.8)
=0.57048161 / 0.60052683
=0.95

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=8410.1 / 7128.852
=1.1797

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(533.418 / (533.418 + 1755.8)) / (735.9 / (735.9 + 1899.3))
=0.23301319 / 0.27925774
=0.8344

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1891.3 / 8410.1) / (1526.673 / 7128.852)
=0.22488437 / 0.21415412
=1.0501

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((5890.4 + 5369.4) / 22794.6) / ((7918.2 + 2601.3) / 15602.8)
=0.49396787 / 0.67420591
=0.7327

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(912.7 - -57.1 - 949) / 22794.6
=0.0009

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Mylan NV has a M-score of -1.94 signals that the company is likely to be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Mylan NV Annual Data

Mar05Mar06Mar07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.70650.81211.12811.04311.06940.87571.09620.98281.15191.1154
GMI 1.1150.99650.95381.2990.98921.00130.97280.97720.97250.9629
AQI 0.83951.1471.86912.18320.99850.99110.98930.95771.07480.7707
SGI 0.91181.0031.28213.18740.99131.07021.12461.10871.01661.1173
DEPI 1.18231.14441.25550.28791.08471.01630.91751.00411.18750.9831
SGAI 1.40950.86720.74591.53341.00560.96680.99391.04020.99131.0307
LVGI 1.15344.09761.08981.16410.96270.98790.99041.14590.99451.0042
TATA -0.0169-0.1273-0.0642-0.0554-0.0365-0.0479-0.0145-0.0261-0.0268-0.0025
M-score -2.09-4.16-2.04-0.34-2.58-2.75-2.37-2.60-2.41-2.40

Mylan NV Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.90391.01011.11521.15191.08331.02430.92221.11541.19791.3768
GMI 0.97940.95950.95830.97250.97370.98450.97820.96290.95960.9732
AQI 0.95060.95250.97311.07481.10621.11660.91230.77070.95630.95
SGI 1.08961.07111.02691.01661.02311.04141.09441.11731.12621.1797
DEPI 1.01171.03561.14651.18751.1891.17971.07060.98310.95850.8344
SGAI 1.02170.97271.01350.99130.9931.06891.03571.03071.0691.0501
LVGI 1.1851.00211.07870.99450.92451.01161.03951.00420.73450.7327
TATA -0.0454-0.0303-0.0229-0.0268-0.0372-0.0398-0.0249-0.0025-0.00380.0009
M-score -2.79-2.58-2.50-2.41-2.48-2.56-2.64-2.40-2.17-1.94
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